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Capital will flow from a higher fee fund to a lower fee fund to preserve value over time. Blackrock is 6x cheaper per year in fees than GBTC today. GBTC is strictly worse than all the other BTC funds for capital preservation over time.
What is interesting is SEC did not allow issuance/redemption to swap BTC -> BTC, (like exchange), it had to be settled through dollars first.
Which could be a good reason for the volatility of late, but also was a stress test of the spot markets.
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Grayscale was one of the earliest adopters, though. Management of the fund wasnt great, so now people are jumping ship. But without grayscale, would btc have picked up as much as it has now? From this graph, you can tell people are still interested in investing in btc. Not the way l would invest, but different strokes for different folks.
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More GBTC outflow to creditors
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